President Václav Klaus has appealed to MPs to reject government legislation raising the VAT rates. Speaking during his visit to a Prague elementary school on Monday, Mr Klaus said he hoped that “common sense will prevail” in Tuesday’s vote on the issue in the lower house, and that MPs would vote “responsibly” on the draft legislation. The centre-right Czech government is planning to raise the VAT rates by 1 percent to 15 and 21 percent respectively to narrow the gap in public finances. The plan has been criticized by the opposition, a number of economists including President Klaus who say the VAT hike will further deepen the recession of the Czech economy.
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